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MercadoLibre (MercadoLibre) E10 : $4.21 (As of Mar. 2024)


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What is MercadoLibre E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

MercadoLibre's adjusted earnings per share data for the three months ended in Mar. 2024 was $6.780. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $4.21 for the trailing ten years ended in Mar. 2024.

During the past 12 months, MercadoLibre's average E10 Growth Rate was 86.30% per year. During the past 3 years, the average E10 Growth Rate was 47.30% per year. During the past 5 years, the average E10 Growth Rate was 15.50% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of MercadoLibre was 47.30% per year. The lowest was -14.20% per year. And the median was 5.30% per year.

As of today (2024-07-24), MercadoLibre's current stock price is $1642.08. MercadoLibre's E10 for the quarter that ended in Mar. 2024 was $4.21. MercadoLibre's Shiller PE Ratio of today is 390.04.

During the past 13 years, the highest Shiller PE Ratio of MercadoLibre was 1770.32. The lowest was 63.56. And the median was 347.92.


MercadoLibre E10 Historical Data

The historical data trend for MercadoLibre's E10 can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

MercadoLibre E10 Chart

MercadoLibre Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.25 1.11 1.14 1.88 3.55

MercadoLibre Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
E10 Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.26 2.71 3.36 3.55 4.21

Competitive Comparison of MercadoLibre's E10

For the Internet Retail subindustry, MercadoLibre's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


MercadoLibre's Shiller PE Ratio Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, MercadoLibre's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where MercadoLibre's Shiller PE Ratio falls into.



MercadoLibre E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, MercadoLibre's adjusted earnings per share data for the three months ended in Mar. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=6.78/131.7762*131.7762
=6.780

Current CPI (Mar. 2024) = 131.7762.

MercadoLibre Quarterly Data

per share eps CPI Adj_EPS
201406 -0.580 100.560 -0.760
201409 0.760 100.428 0.997
201412 0.760 99.070 1.011
201503 0.040 99.621 0.053
201506 0.440 100.684 0.576
201509 1.030 100.392 1.352
201512 0.880 99.792 1.162
201603 0.680 100.470 0.892
201606 0.360 101.688 0.467
201609 0.880 101.861 1.138
201612 1.160 101.863 1.501
201703 1.100 102.862 1.409
201706 0.120 103.349 0.153
201709 0.630 104.136 0.797
201712 -1.530 104.011 -1.938
201803 -0.290 105.290 -0.363
201806 -0.250 106.317 -0.310
201809 -0.230 106.507 -0.285
201812 -0.050 105.998 -0.062
201903 0.130 107.251 0.160
201906 0.310 108.070 0.378
201909 -2.960 108.329 -3.601
201912 -1.110 108.420 -1.349
202003 -0.440 108.902 -0.532
202006 1.110 108.767 1.345
202009 0.280 109.815 0.336
202012 -1.020 109.897 -1.223
202103 -0.680 111.754 -0.802
202106 1.370 114.631 1.575
202109 1.920 115.734 2.186
202112 -0.920 117.630 -1.031
202203 1.300 121.301 1.412
202206 2.430 125.017 2.561
202209 2.560 125.227 2.694
202212 3.250 125.222 3.420
202303 3.970 127.348 4.108
202306 5.160 128.729 5.282
202309 7.160 129.860 7.266
202312 3.250 129.419 3.309
202403 6.780 131.776 6.780

Add all the adjusted EPS together and divide 10 will get our e10.


MercadoLibre  (NAS:MELI) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

MercadoLibre's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=1642.08/4.21
=390.04

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

During the past 13 years, the highest Shiller P/E Ratio of MercadoLibre was 1770.32. The lowest was 63.56. And the median was 347.92.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


MercadoLibre E10 Related Terms

Thank you for viewing the detailed overview of MercadoLibre's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


MercadoLibre (MercadoLibre) Business Description

Address
WTC Free Zone, Dr. Luis Bonavita 1294, Of. 1733, Tower II, Montevideo, URY, 11300
MercadoLibre runs the largest e-commerce marketplace in Latin America, connecting a network of more than 148 million active users and 1 million active sellers as of the end of 2022 across an 18-country footprint. The company also operates a host of complementary businesses, with shipping solutions (Mercado Envios), a payment and financing operation (Mercado Pago and Mercado Credito), advertisements (Mercado Clics), classifieds, and a turnkey e-commerce solution (Mercado Shops) rounding out its arsenal. MercadoLibre generates revenue from final value fees, advertising royalties, payment processing, insertion fees, subscription fees, and interest income from consumer and small-business lending.
Executives
De La Serna Juan Martin officer: Executive VP Corporate Affairs AV. PTE. PERON 2375, LOTE MN04, PILAR, BUENOS AIRES C1 1629
Emiliano Calemzuk director C/O MERCADOLIBRE, INC., TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN
Petroni Merhy Andrea Mayumi director HOUSE B, 32 STANLEY VILLAGE ROAD, STANLEY K3 000000
Marcelo Melamud officer: V. P. Chief Accounting Officer TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN
Richard A Sanders director 80 PALL MALL, LONDON X0 SW1Y 5ES
Ariel Szarfsztejn officer: Executive VP - Commerce POSTA 4789, 6TH FLOOR, BUENOS AIRES C1 C1430CRG
Henrique Vasoncelos Dubugras director 1000 LAUREL WAY, BEVERLY HILLS CA 90210
Alejandro Nicolas Aguzin director ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430DNN
Meyer Malka director 364 UNIVERSITY AVENUE, PALO ALTO CA 94301
Roberto Balls Sallouti director ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1 C1430CRG
Stelleo Tolda officer: Country Manager Brazil C/O MERCADOLIBRE, INC., TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN
Ebay Inc 10 percent owner 2025 HAMILTON AVENUE, SAN JOSE CA 95125
Daniel Rabinovich officer: VP-Chief Technology Officer ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430CRG
A Michael Spence director 121 INNOVATION DR STE 200, IRVINE CA 92612
Pedro Arnt officer: Executive VP and CFO ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430CRG

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